Taiwan's TSMC to establish chip packaging capabilities

Taiwan's TSMC, the world's top contract chip maker, will invest $59.8 million in establishing chip packaging capabilities for the first time using the advanced 12-inch wafer technology to tap future demand, a Reuters report said.

The Reuters report said the board of TSMC also approved spending a further $22.8 million in upgrading the processing technology for its 8-inch, 0.18 micron wafers, according to statement to the Taiwan Stock Exchange.

The upgrade will enable them to carry out high voltage, radio frequency and BiCMOS processes, said the statement, although monthly capacity will fall to 11,100 wafers from 12,600.

Wafer-level packaging technology can reduce the size of end-products, boosting the competitiveness of TSMC and its customers, the statement said.

No further details were provided.

The Reuters report said TSMC said last week its July sales jumped 4.3%, its first annual gain in nine months, as an emerging recovery in the chip sector gathers speed.